Nissan has been taking a beating in recent times, with its CEO being charged with financial wrongdoing and massive losses worsened by the COVID-19 pandemic. It’s getting to be like the 1990s when a steady decline in its business saw a debt of US$20 billion by 1999 putting it on the brink of bankruptcy.
The new management team is struggling to slash expenses worldwide, cutting at least 12,500 jobs globally by March 2023 and closing some factories. It’s almost like the early years of the Ghosn era when his ‘Nissan Revival Plan’ called for 5 factories to close with a termination of up to 21,000 jobs and 50% reduction in suppliers. Though criticised for his extreme measures, Ghosn turned Nissan around completely by March 2001 with a net profit of 331.1 billion yen.
Product development was naturally hampered by limited budgets; reduced sales could not generate enough revenue to effectively fund development of the next generations.